Contact: Emily Riley phone:

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1 Contact: Emily Riley phone: Radian Announces First Quarter 2016 Financial Results -- Net income of $66 million or $0.29 per diluted share -- Adjusted pretax operating income of $130 million -- Adjusted diluted net operating income of $0.37 per share -- Book value per share increases 8% year-over-year to $12.42 PHILADELPHIA, April 27, 2016 Radian Group Inc. (NYSE: RDN) today reported net income from continuing operations for the quarter ended March 31, 2016, of $66.2 million, or $0.29 per diluted share. This compares to net income from continuing operations for the quarter ended March 31, 2015, of $91.7 million, or $0.39 per diluted share. Pretax income from continuing operations for the quarter ended March 31, 2016, was $102.4 million, compared to $137.5 million for the quarter ended March 31, Key Financial Highlights (dollars in millions, except per share data) Quarter Ended Quarter Ended March 31, 2016 March 31, 2015 Net income from continuing operations Diluted net income per share from continuing operations Pretax income from continuing operations Percent Change $66.2 $91.7 (28%) $0.29 $0.39 (26%) $102.4 $137.5 (26%) Adjusted pretax operating income $130.2 $ % Adjusted diluted net operating income per share * $0.37 $0.35 6% Revenues $313.0 $ % Net premiums earned - insurance $221.0 $224.6 (2%) Book value per share $12.42 $ % * Adjusted diluted net operating income per share is calculated using the company s statutory tax rate.

2 Adjusted pretax operating income for the quarter ended March 31, 2016, was $130.2 million, compared to $123.9 million for the quarter ended March 31, Adjusted diluted net operating income per share for the quarter ended March 31, 2016, was $0.37, compared to $0.35 for the quarter ended March 31, See Non-GAAP Financial Measures below. Book value per share at March 31, 2016 grew to $12.42, compared to $12.07 at December 31, 2015, and $11.53 at March 31, Our solid first quarter results were driven primarily by exceptional credit trends, said Radian s Chief Executive Officer S.A. Ibrahim. We delivered on our commitment to strengthen our financial position, increase capital flexibility and improve our debt maturity profile, and during the quarter Radian Guaranty returned to investment grade ratings. FIRST QUARTER HIGHLIGHTS AND RECENT EVENTS Mortgage Insurance New mortgage insurance written (NIW) was $8.1 billion for the quarter, compared to $9.1 billion in the fourth quarter of 2015 and $9.4 billion in the prior-year quarter. Of the $8.1 billion in new business written in the first quarter of 2016, 29 percent was written with single premiums, which is generally unchanged from the fourth quarter of Net single premiums written, after consideration of the 35 percent ceded under the previously announced Single Premium QSR, was 19 percent in the first quarter of The Single Premium QSR decreased the percentage of Radian s singlepremium risk in force, net of reinsurance ceded, from 31 to 25 percent as of March 31, Refinances accounted for 19 percent of total NIW in the first quarter of 2016, compared to 17 percent in the fourth quarter of 2015, and 33 percent a year ago. NIW continued to consist of loans with excellent risk characteristics.

3 Total primary mortgage insurance in force as of March 31, 2016, was $175.4 billion, compared to $175.6 billion as of December 31, 2015, and $172.1 billion as of March 31, Persistency, which is the percentage of mortgage insurance in force that remains on the company s books after a twelve-month period, was 79.4 percent as of March 31, 2016, compared to 78.8 percent as of December 31, 2015, and 82.6 percent as of March 31, Annualized persistency for the three-months ended March 31, 2016, was 82.3 percent, compared to 81.8 percent for the three-months ended December 31, 2015, and 80.3 percent for the three-months ended March 31, Total net premiums earned were $221.0 million for the quarter ended March 31, 2016, compared to $226.4 million for the quarter ended December 31, 2015, and $224.6 million for the quarter ended March 31, The Single Premium QSR decreased net premiums earned by approximately $6.0 million, net of the accrued profit commission of $6.1 million. The mortgage insurance provision for losses was $43.3 million in the first quarter of 2016, compared to $56.8 million in the fourth quarter of 2015, and $45.9 million in the prior-year period. The provision for losses in the first quarter included the positive impact of a modest reduction in the company s default to claim rate assumption for new notices of default as well as positive development on existing defaults. The loss ratio in the first quarter was 19.6 percent, compared to 25.1 percent in the fourth quarter of 2015 and 20.4 percent in the first quarter of Mortgage insurance loss reserves were $891.3 million as of March 31, 2016, compared to $976.4 million as of December 31, 2015, and $1,384.7 million as of March 31, Primary reserve per primary default (excluding IBNR and other reserves) was $24,959 as of March 31, This compares to primary reserve per primary default of $24,019 as of December 31, 2015, and $28,423 as of March 31, 2015.

4 The total number of primary delinquent loans decreased by 13 percent in the first quarter from the fourth quarter of 2015, and by 24 percent from the first quarter of The primary mortgage insurance delinquency rate decreased to 3.5 percent in the first quarter of 2016, compared to 4.0 percent in the fourth quarter of 2015, and 4.6 percent in the first quarter of Total mortgage insurance claims paid were $127.7 million in the first quarter, compared to $176.5 million in the fourth quarter of 2015, and $207.1 million in the first quarter of The company continues to expect claims paid for the full-year 2016 of approximately $ million. In January, Moody s Investors Service upgraded its insurance financial strength ratings of Radian Guaranty to an investment grade rating of Baa3. In March, Standard & Poor s Ratings Services upgraded its financial strength and long-term issuer credit ratings on Radian Guaranty to an investment grade rating of BBB-. Mortgage and Real Estate Services The Services segment is primarily comprised of the operations for Clayton Holdings LLC, a leading provider of risk-based analytics, residential loan due diligence, consulting, surveillance and staffing solutions. The company also provides - customized Real Estate Owned (REO) asset management and single-family rental component services through its Green River Capital subsidiary; - advanced Automated Valuation Models, Broker Price Opinions and technology solutions to monitor loan portfolio performance, acquire and track non-performing loans, and value and sell residential real estate through its Red Bell Real Estate subsidiary; - valuation, title, closing and settlement services as well as technology solutions for vendor management through its ValuAmerica subsidiary; and - a global reach through its Clayton EuroRisk subsidiary. Total revenues for the first quarter were $32.2 million, compared to $38.2 million for the fourth quarter of 2015, and $31.5 million for the first quarter of The adjusted pretax operating loss before corporate allocations for the quarter ended March 31, 2016, was $3.7 million, compared to income of $3.6 million for the quarter ended December 31, 2015, and income of $3.4 million for the quarter ended

5 March 31, Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the quarter ended March 31, 2016 was a loss of $3.1 million, compared to income of $4.2 million for the quarter ended December 31, 2015, and income of $3.9 million for the quarter ended March 31, You may find details regarding the non-gaap measure EBITDA and its definition in Exhibits F and G. Consolidated Expenses Other operating expenses were $59.0 million in the first quarter, compared to $59.6 million in the fourth quarter of 2015, and $53.8 million in the first quarter of last year. Consistent with the company s expense reduction initiatives announced last quarter, operating expenses for the first quarter of 2016 included severance charges of approximately $3.0 million related to a reduction in force. Operating expenses for the first quarter of 2016 were comprised of $43.2 million for the Mortgage Insurance segment, compared to $46.7 million in the fourth quarter of 2015, and $43.8 million in the first quarter of last year. Operating expenses for the first quarter of 2016 were comprised of $15.6 million for the Services segment, compared to $12.7 million in the fourth quarter of 2015, and $9.8 million in the first quarter of last year. - A significant portion of the $3.0 million in severance charges reflected in the company s consolidated expenses was related to a reduction in force in the Services segment. - Red Bell Real Estate and ValuAmerica were acquired March 20, 2015, and October 8, 2015, respectively, and are therefore not included in operating expenses for the first quarter of Operating expenses for these companies represented $2.8 million in the first quarter of CAPITAL AND LIQUIDITY UPDATE Radian Group maintains approximately $393 million of available liquidity. Radian Guaranty expects to be in a position to seek to redeem a portion, or potentially all, of its $325 million surplus note with Radian Group as early as June 30, Any repayments of the surplus note by Radian Guaranty would increase Radian Group s available liquidity by the same amount. Redemption of the surplus note is subject to approval by the Pennsylvania Insurance Department.

6 During the first quarter of 2016, the company successfully completed a series of transactions to strengthen its financial position. The combination of these actions have the impact of decreasing diluted shares outstanding, improving its debt maturity profile and significantly increasing the amount by which our Available Assets exceed our Minimum Required Assets under the PMIERs Financial Requirements. This series of transactions consisted of: - the issuance of $350 million aggregate principal amount of Senior Notes due 2021; - the purchases of aggregate principal amounts of approximately $30.1 million and $288.4 million, respectively, of the company s outstanding Convertible Senior Notes due 2017 and 2019; - the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017; - the completion of a share repurchase program pursuant to which the company purchased an aggregate of $100.0 million of Radian Group common stock; and - the entry into the Radian Guaranty Single Premium QSR transaction. Radian Guaranty is compliant with the PMIERs and does not expect to require any additional capital contributions in order to remain compliant. The financial requirements of the PMIERs require a mortgage insurer's Available Assets to equal or exceed its Minimum Required Assets. As of March 31, 2016, Radian Guaranty s Available Assets exceeded its Minimum Required Assets by approximately $500 million, due primarily to the significant positive impact of the Single Premium QSR as well as organic growth. As of March 31, 2016, a total of $5.3 billion of risk in force outstanding had been ceded under quota share reinsurance agreements. Ibrahim added, With the combination of our high-quality mortgage insurance portfolio and the expanded capabilities of our mortgage and real estate services businesses, we believe we are better positioned today to drive long-term value than ever before.

7 CONFERENCE CALL Radian will discuss first quarter financial results in a conference call today, Wednesday, April 27, 2016, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at or at The call may also be accessed by dialing inside the U.S., or for international callers, using passcode or by referencing Radian. A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: inside the U.S., or for international callers, passcode In addition to the information provided in the company s earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian s website under Investors >Quarterly Results, or by clicking on NON-GAAP FINANCIAL MEASURES Radian believes that adjusted pretax operating income and adjusted diluted net operating income per share (non-gaap measures) facilitate evaluation of the company s fundamental financial performance and provide relevant and meaningful information to investors about the ongoing operating results of the company. On a consolidated basis, these measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance. The measures described below have been established in order to increase transparency for the purpose of evaluating the company s core operating trends and enabling more meaningful comparisons with Radian s competitors. Adjusted pretax operating income is defined as earnings excluding the impact of certain items that are not viewed as part of the operating performance of the company s primary activities, or not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. Adjusted pretax operating income adjusts GAAP pretax income from continuing operations to remove the effects of: (i) net gains (losses) on investments and other financial instruments; (ii) loss on induced

8 conversion and debt extinguishment; (iii) acquisition-related expenses; (iv) amortization and impairment of intangible assets; and (v) net impairment losses recognized in earnings. Adjusted diluted net operating income per share represents a diluted net income per share calculation using as its basis adjusted pretax operating income, net of taxes at the company s statutory tax rate for the period. In addition to the above non-gaap measures for the consolidated company, the company also presents as supplemental information a non-gaap measure for the Services segment, representing earnings before interest, income taxes, depreciation and amortization (EBITDA). Services EBITDA is calculated by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. Services EBITDA is presented to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry. See Exhibit F or Radian s website for a description of these items, as well as Exhibit G for reconciliations to the most comparable consolidated GAAP measures. ABOUT RADIAN Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance, risk management products and real estate services to financial institutions. Radian offers products and services through two business segments: - Mortgage Insurance, through its principal mortgage insurance subsidiary Radian Guaranty Inc. This private mortgage insurance protects lenders from default-related losses, facilitates the sale of low-downpayment mortgages in the secondary market and enables homebuyers to purchase homes more quickly with downpayments less than 20%. - Mortgage and Real Estate Services, through its principal services subsidiary Clayton, as well as Green River Capital, Red Bell Real Estate and ValuAmerica. These solutions include information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize, service and monitor loans and asset-backed securities. Additional information may be found at

9 FINANCIAL RESULTS AND SUPPLEMENTAL INFORMATION CONTENTS (Unaudited) For trend information on all schedules, refer to Radian s quarterly financial statistics at Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Exhibit G: Exhibit H: Exhibit I: Exhibit J: Exhibit K: Exhibit L: Exhibit M: Condensed Consolidated Statements of Operations Trend Schedule Net Income Per Share Trend Schedule Condensed Consolidated Balance Sheets Discontinued Operations Segment Information Definition of Consolidated Non-GAAP Financial Measure Consolidated Non-GAAP Financial Measure Reconciliations Mortgage Insurance Supplemental Information New Insurance Written Mortgage Insurance Supplemental Information Insurance in Force, Risk in Force by Product and Statutory Capital Ratios Mortgage Insurance Supplemental Information Risk in Force by FICO, LTV and Policy Year Mortgage Insurance Supplemental Information Claims, Reserves and Reserve per Default Mortgage Insurance Supplemental Information Default Statistics Mortgage Insurance Supplemental Information Captives, QSR and Persistency

10 Condensed Consolidated Statements of Operations Exhibit A (In thousands, except per share amounts) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Revenues: Net premiums earned - insurance $ 220,950 $ 226,443 $ 227,433 $ 237,437 $ 224,595 Services revenue 31,600 37,493 42,189 43,503 30,630 Net investment income 27,201 22,833 22,091 19,285 17,328 Net gains (losses) on investments and other financial instruments 31,286 (13,402) 3,868 28,448 16,779 Other income 1,915 1,515 1,711 1,743 1,331 Total revenues 312, , , , ,663 Expenses: Provision for losses 42,991 56,805 64,192 32,560 45,028 Policy acquisition costs 6,389 4,831 2,880 6,963 7,750 Direct cost of services 21,749 22,241 24,949 23,520 19,253 Other operating expenses 58,989 59,570 65,082 67,731 53,774 Interest expense 21,534 20,996 21,220 24,501 24,385 Loss on induced conversion and debt extinguishment 55,570 2, ,876 Amortization and impairment of intangible assets 3,328 3,409 3,273 3,281 3,023 Total expenses 210, , , , ,213 Pretax income from continuing operations 102, , ,685 79, ,450 Income tax provision 36,153 30,182 45,594 34,791 45,723 Net income from continuing operations 66,249 74,528 70,091 45,193 91,727 Income from discontinued operations, net of tax 4, Net income $ 66,249 $ 74,528 $ 70,091 $ 50,048 $ 92,257 Diluted net income per share: Net income from continuing operations $ 0.29 $ 0.32 $ 0.29 $ 0.20 $ 0.39 Income from discontinued operations, net of tax 0.02 Net income $ 0.29 $ 0.32 $ 0.29 $ 0.22 $ 0.39 Selected Mortgage Insurance Key Ratios Loss ratio (1) 19.6% 25.1% 28.2% 13.3% 20.4% Expense ratio (1) 22.4% 22.7% 23.9% 25.8% 23.0% (1) Calculated on a GAAP basis using net premiums earned. On April 1, 2015, Radian Guaranty completed the previously disclosed sale of 100% of the issued and outstanding shares of Radian Asset Assurance to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, As a result, the operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. See Exhibit D for additional information on discontinued operations.

11 Net Income Per Share Exhibit B The calculation of basic and diluted net income per share was as follows: (In thousands, except per share amounts) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net income from continuing operations: Net income from continuing operations basic $ 66,249 $ 74,528 $ 70,091 $ 45,193 $ 91,727 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 3,390 3,664 3,714 3,707 3,673 Net income from continuing operations diluted $ 69,639 $ 78,192 $ 73,805 $ 48,900 $ 95,400 Net income: Net income from continuing operations basic $ 66,249 $ 74,528 $ 70,091 $ 45,193 $ 91,727 Income from discontinued operations, net of tax 4, Net income basic 66,249 74,528 70,091 50,048 92,257 Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1) 3,390 3,664 3,714 3,707 3,673 Net income diluted $ 69,639 $ 78,192 $ 73,805 $ 53,755 $ 95,930 Average common shares outstanding basic 203, , , , ,224 Dilutive effect of Convertible Senior Notes due ,057 1,798 12,438 10,886 Dilutive effect of Convertible Senior Notes due ,583 37,736 37,736 37,736 37,736 Dilutive effect of stock-based compensation arrangements (2) 2,418 2,316 3,323 3,364 3,202 Adjusted average common shares outstanding diluted 239, , , , ,048 Net income per share: Basic: Net income from continuing operations $ 0.33 $ 0.36 $ 0.34 $ 0.23 $ 0.48 Income from discontinued operations, net of tax 0.03 Net income $ 0.33 $ 0.36 $ 0.34 $ 0.26 $ 0.48 Diluted: Net income from continuing operations $ 0.29 $ 0.32 $ 0.29 $ 0.20 $ 0.39 Income from discontinued operations, net of tax 0.02 Net income $ 0.29 $ 0.32 $ 0.29 $ 0.22 $ 0.39 (1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion. (2) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of diluted net income per share because they were anti-dilutive: (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Shares of common stock equivalents

12 Condensed Consolidated Balance Sheets Exhibit C March 31 December 31, September 30, June 30, March 31, (In thousands, except per share data) Assets: Investments $ 4,470,172 $ 4,298,686 $ 4,376,771 $ 4,309,148 $ 3,621,646 Cash 64,844 46,898 69,030 51,381 57,204 Restricted cash 10,060 13,000 10,280 12,633 14,220 Accounts and notes receivable 66,340 61,734 65,951 72,093 64,405 Deferred income taxes, net 518, , , , ,996 Goodwill and other intangible assets, net 286, , , , ,798 Prepaid reinsurance premium 228,718 40,491 44,091 47,835 53,088 Other assets 325, , , , ,188 Assets held for sale 1,755,873 Total assets $ 5,969,391 $ 5,642,100 $ 5,760,916 $ 5,736,504 $ 6,797,418 Liabilities and stockholders equity: Unearned premiums $ 673,887 $ 680,300 $ 676,938 $ 665,947 $ 657,555 Reserve for losses and loss adjustment expense 891, ,399 1,098,570 1,204,792 1,384,714 Long-term debt 1,286,466 1,219,454 1,230,246 1,224,892 1,202,535 Reinsurance funds withheld 151,104 Other liabilities 306, , , , ,642 Liabilities held for sale 966,078 Total liabilities 3,308,993 3,145,169 3,317,609 3,374,560 4,521,524 Equity component of currently redeemable convertible senior notes 7,737 8,546 68,982 Common stock Additional paid-in capital 1,880,173 1,823,442 1,825,034 1,816,545 1,648,436 Retained earnings 757, , , , ,593 Accumulated other comprehensive income (loss) 22,791 (18,477) (7,419) (11,534) 59,674 Total stockholders equity 2,660,398 2,496,931 2,435,570 2,353,398 2,206,912 Total liabilities and stockholders equity $ 5,969,391 $ 5,642,100 $ 5,760,916 $ 5,736,504 $ 6,797,418 Shares outstanding 214, , , , ,416 Book value per share $ $ $ $ $ 11.53

13 Discontinued Operations Exhibit D The income from discontinued operations, net of tax consisted of the following components for the periods indicated: 2015 (In thousands) Qtr 2 Qtr 1 Net premiums earned $ $ 1,007 Net investment income 9,153 Net gains on investments and other financial instruments 7,818 13,668 Change in fair value of derivative instruments 2,625 Total revenues 7,818 26,453 Provision for losses 502 Policy acquisition costs (191) Other operating expense 4,107 Total expenses 4,418 Equity in net loss of affiliates (13) Income from operations of businesses held for sale 7,818 22,022 Loss on sale (350) (13,930) Income tax provision 2,613 7,562 Income from discontinued operations, net of tax $ 4,855 $ 530

14 Segment Information Exhibit E (page 1 of 2) Summarized financial information concerning our operating segments as of and for the periods indicated is as follows. For a definition of adjusted pretax operating income and EBITDA, along with reconciliations to consolidated GAAP measures, see Exhibits F and G. Mortgage Insurance (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net premiums written - insurance $ 26,310 (1) $ 233,347 $ 242,168 $ 251,082 $ 241,908 Decrease (increase) in unearned premiums 194,640 (6,904) (14,735) (13,645) (17,313) Net premiums earned - insurance 220, , , , ,595 Net investment income (2) 27,201 22,833 22,091 19,285 17,328 Other income (2) 1,915 1,515 1,711 1,743 1,331 Total 250, , , , ,254 Provision for losses 43,275 56,817 64,128 31,637 45,851 Policy acquisition costs 6,389 4,831 2,880 6,963 7,750 Other operating expenses before corporate allocations 33,829 37,406 36,632 41,853 34,050 Total (3) 83,493 99, ,640 80,453 87,651 Adjusted pretax operating income before corporate allocations 166, , , , ,603 Allocation of corporate operating expenses (2) 9,329 9,251 14,893 12,516 9,758 Allocation of interest expense (2) 17,112 16,582 16,797 20,070 19,953 Adjusted pretax operating income $ 140,132 $ 125,904 $ 115,905 $ 145,426 $ 125,892 Services (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Services revenue (3) $ 32,196 $ 38,175 $ 43,114 $ 44,595 $ 31,532 Direct cost of services 22,053 22,880 25,870 25,501 19,253 Other operating expenses before corporate allocations 13,883 11,710 11,533 11,522 8,857 Total 35,936 34,590 37,403 37,023 28,110 Adjusted pretax operating (loss) income before corporate allocations (4) (3,740) 3,585 5,711 7,572 3,422 Allocation of corporate operating expenses 1, ,567 1, Allocation of interest expense 4,422 4,414 4,423 4,431 4,432 Adjusted pretax operating (loss) income $ (9,913) $ (1,797) $ (279) $ 1,834 $ (1,991) (1) Net of ceded premiums written under the Single Premium QSR transaction of $197.6 million. (2) For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. (3) Inter-segment information: Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Inter-segment expense included in Mortgage Insurance segment $ 596 $ 682 $ 925 $ 1,092 $ 902 Inter-segment revenue included in Services segment ,

15 Segment Information Exhibit E (page 2 of 2) (4) Supplemental information for Services EBITDA (see definition in Exhibit F): Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Adjusted pretax operating (loss) income before corporate allocations $ (3,740) $ 3,585 $ 5,711 $ 7,572 $ 3,422 Depreciation and amortization Services EBITDA $ (3,079) $ 4,197 $ 6,266 $ 8,054 $ 3,871 Selected balance sheet information for our segments, as of the periods indicated, is as follows: At March 31, 2016 (In thousands) Mortgage Insurance Services Total Total assets $ 5,605, ,886 $ 5,969,391 At December 31, 2015 (In thousands) Mortgage Insurance Services Total Total assets $ 5,281, ,503 $ 5,642,100

16 Definition of Consolidated Non-GAAP Financial Measures Exhibit F (page 1 of 2) Use of Non-GAAP Financial Measures In addition to the traditional GAAP financial measures, we have presented non-gaap financial measures for the consolidated company, adjusted pretax operating income (loss) and adjusted diluted net operating income (loss) per share, among our key performance indicators to evaluate our fundamental financial performance. These non-gaap financial measures align with the way the Company s business performance is evaluated by both management and the board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis adjusted pretax operating income (loss) and adjusted diluted net operating income (loss) per share are non-gaap financial measures, we believe these measures aid in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (the Company s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of the Company s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as GAAP pretax income (loss) from continuing operations excluding the effects of net gains (losses) on investments and other financial instruments, loss on induced conversion and debt extinguishment, acquisition-related expenses, amortization and impairment of intangible assets and net impairment losses recognized in earnings. Adjusted diluted net operating income (loss) per share is calculated by dividing (i) adjusted pretax operating income (loss) attributable to common shareholders, net of taxes computed using the company s statutory tax rate, by (ii) the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Interest expense on convertible debt, share dilution from convertible debt and the impact of stock-based compensation arrangements have been reflected in the per share calculations consistent with the accounting standard regarding earnings per share, whenever the impact is dilutive. Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below. (1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss). (2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt and losses incurred to induce conversion of convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial position; therefore, we do not view these activities as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). (3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss).

17 Definition of Consolidated Non-GAAP Financial Measures Exhibit F (page 2 of 2) (4) Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss). (5) Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss). In addition to the above non-gaap measures for the consolidated company, we also have presented as supplemental information a non-gaap measure for our Services segment, representing earnings before interest, income taxes, depreciation and amortization ( EBITDA ). We calculate Services EBITDA by using adjusted pretax operating income as described above, further adjusted to remove the impact of depreciation and corporate allocations for interest and operating expenses. We have presented Services EBITDA to facilitate comparisons with other services companies, since it is a widely accepted measure of performance in the services industry. See Exhibit G for the reconciliation of our non-gaap financial measures for the consolidated company, adjusted pretax operating income and adjusted diluted net operating income per share, to the most comparable GAAP measures, pretax income from continuing operations and net income per share from continuing operations, respectively. Exhibit G also contains the reconciliation of Services EBITDA to the most comparable GAAP measure, pretax income from continuing operations. Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and Services EBITDA are not measures of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income (loss) from continuing operations or net income (loss) per share from continuing operations. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share or EBITDA may not be comparable to similarlynamed measures reported by other companies.

18 Consolidated Non-GAAP Financial Measure Reconciliations Exhibit G (page 1 of 2) Reconciliation of Adjusted Pretax Operating Income (Loss) to Consolidated Pretax Income from Continuing Operations (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Adjusted pretax operating income (loss): Mortgage Insurance (1) $ 140,132 $ 125,904 $ 115,905 $ 145,426 $ 125,892 Services (9,913) (1,797) (279) 1,834 (1,991) Total adjusted pretax operating income 130, , , , ,901 Net gains (losses) on investments and other financial instruments (2) 31,286 (13,402) 3,868 28,448 16,779 Loss on induced conversion and debt extinguishment (55,570) (2,320) (11) (91,876) Acquisition-related expenses (3) (205) (266) (525) (567) (207) Amortization and impairment of intangible assets (3) (3,328) (3,409) (3,273) (3,281) (3,023) Consolidated pretax income from continuing operations $ 102,402 $ 104,710 $ 115,685 $ 79,984 $ 137,450 (1) For periods prior to the quarter ended June 30, 2015, includes certain corporate income and expenses that have been reallocated from our prior financial guaranty segment to the Mortgage Insurance segment and that were not reclassified to discontinued operations. (2) This line item includes a de minimis amount of expected economic loss or recovery associated with our previously consolidated VIEs that is included in adjusted pretax operating income above. (3) Please see Exhibit F for the definition of this line item. Reconciliation of Adjusted Diluted Net Operating Income Per Share (1) to Net Income Per Share from Continuing Operations Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Adjusted diluted net operating income per share $ 0.37 $ 0.34 $ 0.31 $ 0.40 $ 0.35 After tax per share impact: Net gains (losses) on investments and other financial instruments 0.08 (0.03) Loss on induced conversion and debt extinguishment (0.15) (0.01) (0.28) Acquisition-related expenses Amortization and impairment of intangible assets (0.01) (0.01) (0.01) (0.01) (0.01) Difference between statutory and effective tax rate 0.03 (0.02) Net income per share from continuing operations $ 0.29 $ 0.32 $ 0.29 $ 0.20 $ 0.39 (1) Calculated using the company s statutory tax rate.

19 Consolidated Non-GAAP Financial Measure Reconciliations Exhibit G (page 2 of 2) Reconciliation of Services Segment EBITDA to Consolidated Pretax Income from Continuing Operations (In thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Services EBITDA $ (3,079) $ 4,197 $ 6,266 $ 8,054 $ 3,871 Allocation of corporate operating expenses to Services (1,751) (968) (1,567) (1,307) (981) Allocation of corporate interest expenses to Services (4,422) (4,414) (4,423) (4,431) (4,432) Services depreciation and amortization (661) (612) (555) (482) (449) Services adjusted pretax operating (loss) income (9,913) (1,797) (279) 1,834 (1,991) Mortgage Insurance adjusted pretax operating income 140, , , , ,892 Total adjusted pretax operating income 130, , , , ,901 Net gains (losses) on investments and other financial instruments 31,286 (13,402) 3,868 28,448 16,779 Loss on induced conversion and debt extinguishment (55,570) (2,320) (11) (91,876) Acquisition-related expenses (205) (266) (525) (567) (207) Amortization and impairment of intangible assets (3,328) (3,409) (3,273) (3,281) (3,023) Consolidated pretax income from continuing operations $ 102,402 $ 104,710 $ 115,685 $ 79,984 $ 137,450 On a consolidated basis, adjusted pretax operating income and adjusted diluted net operating income per share are measures not determined in accordance with GAAP. "Services EBITDA" is also a non-gaap measure. These measures are not representative of total profitability, and therefore should not be viewed as substitutes for GAAP pretax income from continuing operations or net income per share from continuing operations. Our definitions of adjusted pretax operating income, adjusted diluted net operating income per share or EBITDA may not be comparable to similarly-named measures reported by other companies. See Exhibit F for additional information on our consolidated non-gaap financial measures.

20 Mortgage Insurance Supplemental Information - New Insurance Written Exhibit H ($ in millions) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Total primary new insurance written $ 8,071 $ 9,099 $ 11,176 $ 11,751 $ 9,385 Percentage of primary new insurance written by FICO score >= % 60.3% 61.0 % 63.0% 63.6 % Total Primary 100.0% 100.0% % 100.0% % Percentage of primary new insurance written Direct monthly and other premiums 71% 71% 73 % 68% 63 % Direct single premiums 29% 29% 27 % 32% 37 % Net single premiums 19% (1) N/A N/A N/A N/A Refinances 19% 17% 13 % 23% 33 % LTV 95.01% and above 3.7% 3.6% 3.5 % 3.2% 1.8 % 90.01% to 95.00% 50.5% 49.5% 51.5 % 49.4% 48.4 % 85.01% to 90.00% 33.1% 34.4% 34.1 % 34.0% 33.3 % 85.00% and below 12.7% 12.5% 10.9 % 13.4% 16.5 % (1) Represents 29% of direct single premiums written, after consideration of the 35% single premium NIW ceded under the Single Premium QSR.

21 Mortgage Insurance Supplemental Information - Primary Insurance in Force and Risk in Force by Product, Statutory Capital Ratios Exhibit I March 31, December 31, September 30, June 30, March 31, ($ in millions) Primary insurance in force (1) Flow $ 167,526 $ 167,469 $ 166,527 $ 164,137 $ 162,832 Structured 7,860 8,115 8,339 8,555 9,309 Total Primary $ 175,386 $ 175,584 $ 174,866 $ 172,692 $ 172,141 Prime $ 165,526 $ 165,291 $ 164,060 $ 161,397 $ 160,452 Alt-A 5,907 6,176 6,531 6,857 7,122 A minus and below 3,953 4,117 4,275 4,438 4,567 Total Primary $ 175,386 $ 175,584 $ 174,866 $ 172,692 $ 172,141 Primary risk in force (1) (2) Flow $ 42,861 $ 42,771 $ 42,454 $ 41,706 $ 41,256 Structured 1,805 1,856 1,910 1,957 2,133 Total Primary $ 44,666 $ 44,627 $ 44,364 $ 43,663 $ 43,389 Flow Prime $ 41,211 $ 41,036 $ 40,629 $ 39,781 $ 39,251 Alt-A 1,010 1,061 1,124 1,191 1,243 A minus and below Total Flow $ 42,861 $ 42,771 $ 42,454 $ 41,706 $ 41,256 Structured Prime $ 1,101 $ 1,134 $ 1,155 $ 1,182 $ 1,341 Alt-A A minus and below Total Structured $ 1,805 $ 1,856 $ 1,910 $ 1,957 $ 2,133 Total Prime $ 42,312 $ 42,170 $ 41,784 $ 40,963 $ 40,592 Alt-A 1,366 1,427 1,510 1,588 1,653 A minus and below 988 1,030 1,070 1,112 1,144 Total Primary $ 44,666 $ 44,627 $ 44,364 $ 43,663 $ 43,389 Percentage of primary risk in force Direct monthly and other premiums 69% 69% 70% 70% 70% Direct single premiums 31% 31% 30% 30% 30% Net single premiums (3) 25% 30% 30% 29% 29% Statutory Capital Ratios Risk to capital ratio-radian Guaranty only 12.5:1 (4) 14.3:1 16.5:1 16.5:1 17.1:1 Risk to capital ratio-mortgage Insurance combined 12.9:1 (4) 14.6:1 17.9:1 18.0:1 19.1:1 (1) Includes amounts ceded under our reinsurance agreements, as well as amounts related to the Freddie Mac Agreement. (2) Does not include pool risk in force or other risk in force, which combined represent less than 3.0% of our total risk in force for all periods presented. (3) Represents RIF after giving effect to all reinsurance ceded ("Net RIF"). (4) Preliminary.

22 Mortgage Insurance Supplemental Information - Percentage of Primary Risk in Force by FICO, LTV and Policy Year (1) Exhibit J March 31, December 31, September 30, June 30, March 31, ($ in millions) Percentage of primary risk in force by FICO score Flow >= % 58.3% 58.2% 58.1% 58.1% <= Total Flow 100.0% 100.0% 100.0% 100.0% 100.0% Structured >= % % 28.7% 31.1% <= Total Structured 100.0% 100.0% 100.0% 100.0% 100.0% Total >= % 57.1% 57.0% 56.7% 56.8% <= Total Primary 100.0% 100.0% 100.0% 100.0% 100.0% Percentage of primary risk in force by LTV 95.01% and above 7.2% 7.3% 7.4% 7.6% 7.9% 90.01% to 95.00% % to 90.00% % and below Total 100.0% 100.0% 100.0% 100.0% 100.0% Percentage of primary risk in force by policy year 2005 and prior 6.0% 6.3% 6.8% 7.3% 7.8% % % % % Total 100.0% 100.0% 100.0% 100.0% 100.0% Primary risk in force on defaulted loans (2) $ 1,562 $ 1,625 $ 1,666 $ 1,753 $ 1,883 (1) Includes amounts ceded under our reinsurance agreements. (2) Excludes risk related to loans subject to the Freddie Mac Agreement.

23 Mortgage Insurance Supplemental Information - Claims and Reserves Exhibit K ($ in thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Net claims paid Prime $ 74,432 $ 56,900 $ 65,396 $ 83,489 $ 76,186 Alt-A 28,929 21,343 18,966 23,260 19,999 A minus and below 13,196 11,530 14,028 14,965 15,141 Total primary claims paid 116,557 89,773 98, , ,326 Pool 7,389 6,477 8,721 10,798 8,874 Second-lien and other 345 (143) (16) (53) (111) Subtotal 124,291 96, , , ,089 Impact of captive terminations (120) (65) (12,000) Impact of settlements 3,500 80,426 61,994 79,557 99,006 Total $ 127,671 $ 176,468 $ 169,089 $ 212,016 $ 207,095 Average claim paid (1) Prime $ 47.7 $ 46.9 $ 46.2 $ 48.1 $ 44.0 Alt-A A minus and below Total primary average claims paid Pool Total $ 48.9 $ 48.9 $ 47.8 $ 49.6 $ 44.5 Average primary claim paid (2) $ 49.6 $ 50.5 $ 48.5 $ 49.6 $ 45.3 Average total claim paid (2) $ 49.5 $ 50.6 $ 48.5 $ 50.4 $ 45.5 ($ in thousands, except primary reserve per March 31, December 31, September 30, June 30, March 31, primary default amounts) Reserve for losses by category Prime $ 438,598 $ 480,481 $ 519,572 $ 562,918 $ 640,919 Alt-A 183, , , , ,350 A minus and below 116, , , , ,390 IBNR and other 79,051 83, , , ,204 LAE 23,600 26,108 41,464 48,141 53,210 Reinsurance recoverable (3) 8,239 8,286 11,071 11,677 13,365 Total primary reserves 849, ,999 1,051,499 1,152,671 1,316,438 Pool insurance 38,843 42,084 43,234 47,902 62,943 IBNR and other 1,050 1, ,227 LAE 1,227 1,335 1,983 2,353 3,051 Total pool reserves 41,120 44,537 46,166 51,146 67,221 Total 1st lien reserves 890, ,536 1,097,665 1,203,817 1,383,659 Second-lien and other ,055 Total reserves $ 891,348 $ 976,399 $ 1,098,570 $ 1,204,792 $ 1,384,714 1st lien reserve per default Primary reserve per primary default excluding IBNR and other $ 24,959 $ 24,019 $ 26,237 $ 27,279 $ 28,423 (1) Net of reinsurance recoveries and without giving effect to the impact of captive terminations and settlements. (2) Before reinsurance recoveries and without giving effect to the impact of captive terminations and settlements. (3) Primarily represents ceded losses on captive transactions and quota share reinsurance transactions.

24 Mortgage Insurance Supplemental Information - Default Statistics Exhibit L March 31, December 31, September 30, June 30 March 31, Default Statistics Primary Insurance: Prime Number of insured loans 817, , , , ,332 Number of loans in default 19,510 22,223 22,328 23,237 25,114 Percentage of loans in default 2.39% 2.72% 2.75% 2.89% 3.13% Alt-A Number of insured loans 30,990 32,411 34,166 35,927 37,468 Number of loans in default 5,138 5,813 6,318 6,949 7,480 Percentage of loans in default 16.58% 17.94% 18.49% 19.34% 19.96% A minus and below Number of insured loans 30,681 31,902 33,018 34,224 35,425 Number of loans in default 6,221 7,267 7,229 7,490 7,846 Percentage of loans in default 20.28% 22.78% 21.89% 21.89% 22.15% Total Primary Number of insured loans 878, , , , ,225 Number of loans in default (1) 30,869 35,303 35,875 37,676 40,440 Percentage of loans in default 3.51% 4.01% 4.08% 4.32% 4.63% (1) Excludes the following number of loans subject to the Freddie Mac Agreement that are in default as we no longer have claims exposure on these loans: March 31, December 31, September 30, June 30 March 31, Number of loans in default 2,339 2,821 2,993 3,246 3,715

25 Mortgage Insurance Supplemental Information - QSR, Captives and Persistency Exhibit M (page 1 of 2) ($ in thousands) Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Initial and Second Quota Share Reinsurance ( QSR ) Transactions QSR ceded premiums written $ 7,962 $ 6,934 $ 8,467 $ 4,216 $ 10,596 % of premiums written 3.4% 2.9% 3.4% 1.7% 4.2% QSR ceded premiums earned $ 11,325 $ 10,523 $ 12,201 $ 9,465 $ 14,786 % of premiums earned 4.7% 4.4% 5.1% 3.8% 6.1% Ceding commissions written $ 2,270 $ 2,553 $ 2,743 $ 2,982 $ 3,165 Ceding commissions earned $ 5,739 $ 4,921 $ 4,026 $ 5,363 $ 6,664 Profit commission $ $ 1,559 $ 678 $ 5,760 $ Risk in force included in QSR (1) $ 2,018,468 $ 2,131,030 $ 2,253,913 $ 2,394,985 $ 2,575,060 Single Premium QSR Transaction QSR ceded premiums written $ 197,593 N/A N/A N/A N/A % of premiums written 84.7% N/A N/A N/A N/A QSR ceded premiums earned $ 5,994 N/A N/A N/A N/A % of premiums earned 2.5% N/A N/A N/A N/A Ceding commissions written $ 50,932 N/A N/A N/A N/A Ceding commissions earned $ 3,032 N/A N/A N/A N/A Profit commission $ 6,134 N/A N/A N/A N/A Risk in force included in QSR (1) $ 3,308,057 N/A N/A N/A N/A (1) Included in primary risk in force. In the first quarter of 2016, the Single Premium QSR decreased the percentage of Radian s single-premium risk in force, net of reinsurance ceded, from 31 to 25 percent. The Single Premium QSR had a negligible impact on earnings for the first quarter 2016, as follows: ($ in thousands) Before Single Premium QSR Three Months Ended March 31, 2016 Impact of Single Premium QSR As Reported Net premiums earned $ 226,944 $ (5,994) (1) $ 220,950 Provision for losses (43,811) 536 (43,275) Policy acquisition costs (6,515) 126 (6,389) Operating expenses (61,698) 2,906 (58,792) Net impact $ (2,426) (1) Net of profit commission of $6.1 million.